Moldova and Russia have extended their gas contracts for five years

Russian giant Gazprom and Moldova announced today that they will extend for five years the agreement on the delivery of Russian gas to Chisinau, which is facing shortages and accuses Moscow of raising prices.

“The parties have reached an agreement on the price formula and a subsequent agreement on the repayment of Moldova’s gas-related debt,” Moldovan Foreign Ministry spokesman Daniel Voda said in a statement.

Gazprom confirmed the agreement in a separate statement, stating that the contract will be extended from November 1 on the basis of “mutually favorable conditions”.

The agreement was reached after negotiations between Moldovan Deputy Minister Andrej Spinu and Gazprom chief Alexei Miller, in St. Petersburg, where Gazprom is headquartered.

Moldova, which has a population of 2.6 million, is traditionally supplied with gas from Russia through the pro-Russian separatist territory of Transnistria and Ukraine.

Complications arose when Gazprom increased prices in October when extending the contract for a month, a decision the Moldovan government called “unjustified and unrealistic” for the country, one of the poorest in Europe.

In response, Chisinau imposed a state of emergency last week that allowed it to buy gas from Poland, the first time since gaining independence in 1991.

Before the talks in St. Petersburg, Spin said that he wanted Moscow to receive a correction of the price proposed to Moldova.

Tonight, he told Spin that the contract was extended on the basis of the price formula proposed by the Moldovan side, but no details on the new tariffs have been given so far.

Experts estimate that Moscow has increased tariffs to punish Chisinau after the election of pro-European president Maja Sandu 2020.

Moscow, for its part, accused Chisinau of being late with payments and threatened to turn off the tap if a new contract is not signed.

The Kremlin has denied any intention to exert geopolitical pressure on Moldova, saying it was a purely commercial case.

The shortages in Moldova arose in the context of the jump in the price of gas in Europe, which some countries partly attribute to Moscow.

However, gas prices have fallen significantly this week after Russian President Vladimir Putin ordered Gazprom to increase gas supplies to the European Union when Russian tanks are filled.

By Editor

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